Ain Holdings Inc. · TSE:9627
Ain — Q1 FY4/17 Earnings Presentation
25 slides from Ain's earnings presentation, August 2016
Slide 1: IR Presentation
KE IR PRESENTATION AIN GROUP AIN HOLDINGS INC. August 2016
Slide 2: Results Overview
Results Overview © 2016 AIN HOLDINGS INC. All Rights Reserved. 1
Slide 3: Consolidated P/L
Consolidated P/L In the first three months of the fiscal year, net sales increased 10.9% year on year to ¥57,819 million, operating income decreased 15.8% to ¥2,281 million, ordinary income decreased 17.7% to ¥2,376 million, and profit attributable to owners of parent decreased 10.6% to ¥1,371 milli
Slide 4: Dispensing Pharmacy Business (Consolidated)
Dispensing Pharmacy Business（Consolidated） For the first three months of the fiscal year, the dispensing pharmacy business reported higher sales but lower profit with sales rising 10.0% year on year to ¥51,438 million and segment income decreasing 8.2% to ¥3,437 million. During the period under revi
Slide 5: Drug and Cosmetic Store Business (Consolidated)
Drug and Cosmetic Store Business(Consolidated) For the first three months of the fiscal year, the drug and cosmetic store business reported an increase in sales of 5.2% year on year to ¥5,246 million. However, segment loss was ¥194 million, compared with segment loss of ¥124 million in the same peri
Slide 6: Consolidated B/S
Consolidated B/S Net cash became ¥3,142 million due to the increase of cash on hand and in banks. (¥ million) (¥ million) End-FY4/16 End-FY4/17 1Q Assets Liabilities Assets Liabilities Current assets 56,593 Current liabilities 66,744 Current assets Current liabilities 67,300 56,326 Cash on hand and
Slide 7: Assets
Assets The balance of total assets decreased by ¥739 million compared to those in the fiscal year ended April 2016. (¥ million) End-FY4/16 1Q End-FY4/16 End-FY4/17 1Q Change Cash on hand and in banks 20,465 22,647 26,822 +4,175 Notes and accounts receivable 8,371 12,385 7,621 (4,764) Inventories 10,
Slide 8: Liabilities and Net Assets
Liabilities and Net Assets The total liabilities decreased by ¥854 million compared to those in the fiscal year ended April 2016 due to the repayment of debts. (¥ million) End-FY4/16 1Q End-FY4/16 End-FY4/17 1Q Change Accounts payable 33,716 39,987 38,320 (1,667) Short-term debt 6,162 5,690 8,477 +2
Slide 9: FY4/17 Plan (Consolidated)
FY4/17 Plan (Consolidated) We forecast net sales of ¥265,000 million, up 12.8% year on year and ordinary income of ¥16,700 million, up 10.2% year on year for the fiscal year ending April 30, 2016. FY4/15 FY4/16 FY4/17 YoY YoY (¥ million) results results plan change change (%) Net sales 187,904 234,8
Slide 10: 1Q Review
1QReview © 2016 AIN HOLDINGS INC. All Rights Reserved. 9
Slide 11: Analysis of Results (vs FY4/16 1Q)
Analysis of Results(vs FY4/16 1Q) Net sales increased 10.9% year on year reflecting the increase of prescription volume in dispensing pharmacy business and the contribution of store openings in the previous year in drug and cosmetic store business. Ordinary income decreased 15.8% due to the impact o
Slide 12: Analysis of Results (vs Plan)
Analysis of Results(vs Plan) Net sales decreased 6.1% against our plan reflecting the decrease of average sales per prescription due to dispensing fee revisions. Ordinary income decreased 13.9% against our plan due to the non-achievement of net sales’ plan. FY4/17 1Q FY4/171Q Vs plan Average Change
Slide 13: Dispensing Fee Revisions of 2016
Dispensing Fee Revisions of 2016 Before Points After Points Except following 41(31) 1 Except following 41(31) Over 4,000 times and over 70% 2 or Over 2,000 times and over 90% 25(19) Basic dispensing fee Over 4,000 times and over 70% 25(19) or Over 4,000 times from specific hospital Over 2,500 times
Slide 14: Dispensing Fee Revisions of 2016 (1)
Dispensing Fee Revisions of 2016① (¥) After Points March April July Change After (March 2017) Change 1 Except following 41(31) Over 4,000 times and over 70% 2 or Over 2,000 times and over 90% 25(19) or Over 4,000 times from specific hospital Promotion to receive Basic dispensing 382.4 311.9 311.7 (7
Slide 15: Response (2) Standards for Dispensing System Premiums
Response② Standards for Dispensing System Premiums By responding the revisions in 2016, percentage of pharmacies that gain standards for dispensing system premiums became 40.3%, and average premiums for generic drug dispensing systems became 16.2 points. ■ No. of pharmacies that gain standards for d
Slide 16: Top-Line: Number of Stores
Top-Line We opened 15 stores including M&A in FY4/17 1Q. We forecast the number of new store openings will be 126 in the end of FY4/17. ■ Number of stores Hokkaido 946 (Dispensing pharmacy:894 Drug and cosmetic store:52） 115 ■ Plan FY4/17 1Q FY4/17 Plan Results Plan Near No. of stores Tohoku pharmac
Slide 17: FY4/17 Plan (Dispensing Pharmacy Business)
FY4/17 Plan （Dispensing Pharmacy Business） We forecast net sales increase 11.9% year on year by contribution of the previous year’s 120 new store openings including M&A. Meanwhile, we forecast segment income increase 4.1% year on year by the measure of productivity improvement continuously. FY4/16 F
Slide 18: Transition of original products' sales composition
Transition of original products’ sales composition By development and sales of our original product, sales composition ratio and gross profit margin are going up. We forecast sales composition ratio will be 36.0％ and gross profit margin will be 46.6% in FY 4/20. ■ Original products’ sales compositio
Slide 19: FY4/17 Plan (Drug and Cosmetic Store Business)
FY4/17 Plan（Drug and Cosmetic Store Business） We forecast net sales of ¥22,500 million, up 7.7% year on year by 6 new store openings. We plan gross profit margin improve 2.5%, but segment income will be ¥(224) million due to the increase of SG&A expenses by development cost of original product. FY4/
Slide 20: Supplementary Information
Supplementary Information © 2016 AIN HOLDINGS INC. All Rights Reserved. 19
Slide 21: Company Profile
Company Profile Representative Kiichi Otani, President and Representative Director Established August 1969 Market capitalization ¥169,318 million Net sales and Net sales: ¥234,843 million operating income Operating income: ¥14,619 million Number of employees 8,555 (including pharmacists：3,899) Numbe
Slide 22: Dispensing pharmacy sales Growth Transition
Growth Transition Year 1986 1993 1995 2000 2005 2010 2014 20XX Non-hospital dispensing 9.7% 15.8% 20.3% 39.5% 54.1% 63.1% 68.7% 85% ratio Market ¥0.33 trillion ¥0.87 trillion ¥1.23 trillion ¥2.76 trillion ¥4.59 trillion ¥6.08 trillion ¥7.19 trillion ¥8 trillion 8.00 80.0% (¥ million) 18,000 (¥ milli
Slide 23: Comparison to other companies
Comparison to other companies (%) 8.0 7.0 B company 6.0 5.0 Operating margin E company AIN HOLDINGS C company 4.0 Net sales：¥234,843 million D company A company Operating margin：6.2% Market capitalization：¥227,044 million 3.0 2.0 1.0 0.0 0 40,000 80,000 120,000 160,000 200,000 240,000 (¥ million) Ne
Slide 24: Inquiries and disclaimer
Inquiries related to this presentation should be addressed to AIN HOLDINGS INC. Corporate Planning Division TEL(81)11-814-0010 FAX(81)11-814-5550 http://www.ainj.co.jp/ This document may not be reproduced or distributed to any third party without prior approval of AIN HOLDINGS INC. This document has
Slide 25: AIN GROUP
AIN GROUP